Saudi Arabia and Uzbekistan show their brotherly love at the UN WTO meeting

Saudi Arabia’s Minister of Tourism Ahmed Al-Khateeb — who also serves as chairman of Diriyah Gate Development Authority – takes part at the 25th session of the General Assembly of the UN World Tourism organization in Samarkand, Uzbekistan. (Supplied)
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Updated 22 October 2023
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Saudi Arabia and Uzbekistan show their brotherly love at the UN WTO meeting

  • KSA joins 150 countries for the 25th General Assembly of the UN World Tourism Organization in Samarkand

SAMARKAND, Uzbekistan: The quaint historic town of Samarkand, Uzbekistan, which was founded in the 7th century BC, sprung into life this week when high-level delegates, ministers and distinguished guests from more than 150 countries came together for the 25th session of the General Assembly of the UN World Tourism Organization. Held between Oct. 16-20, the Saudi presence was evident throughout the festivities.

On a sunny Samarkand day – after a rainy night – it was announced that Diriyah Co. from Saudi Arabia would officially join the UNWTO as an affiliate member, in a significant move towards fostering global tourism collaboration and advancing the Kingdom’s tourism sector globally. Affiliate Members normally form an integral part of the UNWTO Membership and significantly contribute to a more sustainable, innovative, and collaborative global sector.

As an affiliate member, Diriyah Co. issued a statement announcing it “would actively engage with UNWTO and its global network to collaborate on initiatives, share insights, and support the organization’s mission of making tourism a force for positive change around the world.”

It added: “This partnership is set to enhance the cultural exchange, heritage preservation, and sustainable tourism efforts undertaken by Diriyah Co.”

The company also stated that the collaboration would facilitate discussions on sustainability, innovation and inclusivity in the tourism sector, all of which are essential components of its ongoing efforts to transform the historic city of Diriyah into a vibrant tourist destination.

Diriyah Co.’s affiliation with the UNWTO would also be seen as a testament to Saudi Arabia’s global commitment to advancing the tourism industry globally as well as promoting responsible travel and preserving the world’s cultural and historical heritage.

Under the guidance of Crown Prince Mohammed bin Salman, the Diriyah giga-project has been in alignment with the UN’ Sustainable Development Goals since its start, as it primarily focused on urban regeneration and sustainable development in the area often seen as the birthplace of the Kingdom.

The Diriyah Project, a flagship initiative within Vision 2030, has been central to the Kingdom’s transformation agenda. The  $63.2 billion investment pipeline has added around $18.6 billion to the Kingdom’s gross domestic product and is estimated to create 178,000 direct jobs. It also aims to attract 50 million visitors a year by 2030.




As an affiliate member, Diriyah Co. will actively engage with UNWTO and its global network. (Supplied)

Saudi Arabia’s Minister of Tourism Ahmed Al-Khateeb – who also serves as chairman of Diriyah Gate Development Authority – was present at the General Assembly, and said: “Tourism connects people, cultures, and economies. In our shared global future, tourism plays a crucial role in promoting sustainability, collaboration and economic prosperity. Because of this, I am absolutely delighted that Diriyah is an Affiliate Member of the UNWTO – marking a significant milestone in Saudi Arabia’s commitment to global tourism collaboration.”

Secretary-General of the UNWTO Zurab Pololikashvili added: “Diriyah’s commitment to preserving its rich cultural heritage while promoting sustainable tourism aligns seamlessly with UNWTO’s mission. This affiliation is a testament to the Kingdom’s dedication to making tourism a force for positive change globally, and I look forward to the invaluable contributions Diriyah Co. will bring to our international network. There is only one Diriyah.”

This was not the first mention of the Kingdom during the UNWTO.

In a video announcement, the audience at the UNWTO General Assembly was treated to a clip regarding the new Riyadh School of Tourism and Hospitality.

“One of the first initiatives of the UNWTO’s regional office (in Riyadh) was to develop the Riyadh School of Tourism and Hospitality – dedicated to supporting the ambitions of the new generation of tourism leaders,” Basmah Al-Mayman told Arab News. Al-Mayman is the Middle East regional director at the UNWTO, and the first national from a Gulf Cooperation Council country to become director of that department since the agency was established more than three decades ago.

Al-Mayman, who was also present at the event, said that an agreement was signed between the Ministry of Tourism in the Kingdom and the UNWTO to develop this groundbreaking e-learning platform. As a result, this established the first tourism academy in Riyadh – and the first such dedicated space in the region. It would “aspire to be the largest multicultural educational environment in the world and a leading global center of excellence, redefining tourism and hotel education,” she added.

Meanwhile, in the Uzbek capital of Tashkent, strengthening relations between the two countries has been morphing from within for some time.

“Over these two years, Saudi-Uzbek relations have reached a new level of unprecedented development and progress. The Saudi-Uzbek relations can be described as exemplary,” the Kingdom’s ambassador to the Asian country, Yousef Saleh Algahrah Al-Otaibi, told Arab News. He was also present at the event.

He recalled the historic visit in 2022 when the President of Uzbekistan, Shavkat Mirziyoyev, traveled to the Kingdom and met with the Crown Prince. During that visit, many agreements and memorandums of understanding were signed – both at the government level and at the private sector level. President Mirziyoyev also visited the Kingdom again in 2023, which has pushed both countries to an even stronger position in bilateral relations.

He also mentioned how the two countries have been giving each other power – literally.

“The Saudi ACWA Power is the largest company investing in the field of electricity and renewable energy sources; the company’s investments in Uzbekistan will reach $15 billion, so the company’s investments will become the largest outside the Kingdom of Saudi Arabia,” Al-Otaibi added.

ACWA Power has also contributed significantly to the modernization of Uzbekistan’s infrastructure.

Al-Otaibi’s next plan is to seek cooperation with officials in Uzbekistan to create suitable conditions to attract fresh Saudi investments in the country. One promising avenue is the Islamic Development Bank, and the ambassador mentioned how it already plays a vital role in providing loans for the implementation of vital projects exceeding $2 billion.

“This is an important role of the bank in Uzbekistan, and it aims to contribute to the modernization of the infrastructure of Uzbekistan. I also would like to praise the role of the Saudi Development Fund; it has provided more than SR1 billion ($270 million) in the form of soft loans for vital projects,” Al-Otaibi told Arab News.

The ambassador affectionately referred to the blossoming friendship as “the two brotherly countries.”

He added: “Our countries are attaching great importance to the tourism sector and to its role in the economic, cultural and humanitarian aspects. Uzbekistan is modernizing its facilities and developing tourist places.”

He mentioned how Saudi Arabia’s Minister of Tourism’s physical presence in Samarkand for the UNWTO sessions demonstrated the Kingdom’s strong commitment to strengthening its travel ties, as well as investments, in the country.

“Uzbekistan is the historical, Islamic and scientific center of Central Asia. It is rich with its great Islamic heritage; it is where great scientists were born and who made a significant contribution to the enrichment of religious sciences, such as Imam Al-Bukhari, Al-Tirmizi, Al-Biruni, Al-Khorezmi, and others,” said the ambassador.

On the same day as the start of the UNWTO General Assembly on Oct. 16, Saudi’s leading low-cost airline, Flynas, upgraded its direct flight route to Uzbekistan. Initially, the company offered limited direct flights from Tashkent to Riyadh starting in 2021. This week, it changed its route and increased the frequency. Also, flights will go from Tashkent directly to Jeddah.

These moves will significantly increase the number of religious tourists.

“The direct flights between the two countries have reached more than 20 in a week. Five flights between Tashkent and Jeddah, three flights between Namangan and Jeddah — in addition to the flights from Uzbek Airlines. This will increase the number of Umrah pilgrims and those traveling for work,” Al-Otaibi said.

Early next year, things will get even easier for Saudi nationals to visit Uzbekistan.

“Citizens of the Kingdom of Saudi Arabia will no longer need any visas to enter Uzbekistan, starting from Jan. 1, 2024. This will enable our welcomed guests from the Kingdom to remain in Uzbekistan for a month-long duration and we invite them to explore our rich land with its enriching Islamic history,” Anvar Abdukhalimov from Uzbekistan’s Ministry of Foreign Affairs told Arab News.

Also announced at this week’s UNWTO’s General Assembly – which happens every two years – it was revealed that Saudi Arabia would host the 26th session in 2025.


Closing bell: Saudi main index slips to close at 12,217 

Updated 12 May 2024
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Closing bell: Saudi main index slips to close at 12,217 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 67.36 points, or 0.55 percent, to close at 12,217.05.   

The total trading turnover of the benchmark index was SR5.33 billion ($1.42 billion), as 78 of the stocks advanced while 147 retreated.   

On the other hand, the Kingdom’s parallel market Nomu rose 109.49 points, or 0.40 percent, to close at 27,195.93. This comes as 30 of the stocks advanced while as many as 27 retreated. 

Meanwhile, the MSCI Tadawul Index slipped 7.05 points, or 0.46 percent, to close at 1,530.49. 

The best-performing stock of the day was Saudia Dairy and Foodstuff Co. The company’s share price surged 9.97 percent to SR386.20.  

Other top performers include Saudi Chemical Co. as well as Al-Jouf Agricultural Development Co. 

The worst performer was Thimar Development Holding Co. whose share price dropped by 9.94 percent to SR14.14. 

Other subdued performers included Tanmiah Food Co. and Walaa Cooperative Insurance Co. 

On the announcements front, Etihad Etisalat Co., also known as Mobily, released its interim financial results for the period ending on March 31.  

According to a Tadawul statement, the company’s net profit hit SR638 million in the first quarter of 2024, reflecting a 37.2 percent surge compared to the same quarter last year.  

The increase was mainly driven by a rise in gross profits and a jump in earnings before interest, tax, depreciation, and amortization. While operating expenses also increased, financial charges, zakat, and income tax decreased.  

Moreover, the Tanmiah Food Co. also announced its interim financial results for the first three months of 2024.  

A bourse filing revealed that the firm’s net profit reached SR21 million by the period ending on March 31, unchanged in comparison to the corresponding period in 2023.  

Furthermore, Elm Co. announced its interim financial results for the year’s first quarter.  

According to a Tadawul statement, the company’s net profits climbed 7.1 percent to reach SR345 million in the first three months of 2024 compared to the same period a year earlier.  

This increase is primarily attributed to higher revenue, operating expenses, and income from Murabaha deposits. 

Allianz Saudi Fransi Cooperative Insurance Co. also announced its interim financial results for the period ending on March 31.  

A bourse filing revealed that the firm’s net profit stood at SR9.98 million at the end of the first quarter of 2024, up 4.01 percent when compared to the same quarter a year ago.  

The increase in net profit after zakat and income tax for the current quarter compared to the same quarter of previous years is primarily due to an 86 percent rise in net investment income. 

In addition, the United International Transportation Co., or Budget Saudi, announced its interim financial results for the first three months of 2024. 

According to a Tadawul statement, the company’s net profit hit SR69.7 million in the first quarter of 2024, reflecting a 0.565 percent surge compared to the same quarter last year.  

The surge in net profits is mainly attributed to steady growth in both long-term and short-term rental revenues. 

Saudi Electricity Co. also announced its interim financial results for the period ending on March 31. 

A bourse filing revealed that the firm’s net profit stood at SR897 million at the end of the first quarter of 2024, up 86.8 percent compared to the same quarter a year ago.  

The surge in net profit for the current quarter compared to the corresponding quarter of the previous year is primarily attributed to increased revenue requirements, new earnings from development projects, and higher revenue from Dawiyat Co., among other factors. 

Meanwhile, United Electronics Co., or eXtra, has announced that its shareholders approved the election of board members for the upcoming three-year term beginning May 13.  


Saudi Arabia’s date sector sees 13.7% export growth in Q1, 2024

Updated 12 May 2024
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Saudi Arabia’s date sector sees 13.7% export growth in Q1, 2024

RIYADH: Saudi Arabia’s palm and dates sector is experiencing significant growth, with exports increasing by 13.7 percent in the first quarter of 2024 compared to the same period last year. 

This food division is regarded as a significant contributor to diversifying income sources and boosting the gross domestic product, as the Kingdom has ambitions to establish its dates as the premier choice globally.  

The National Center for Palm and Dates has recently revealed a significant increase in value across various countries during the period, reaching SR644 million ($171.7 million), compared to SR566 million in the first quarter of 2023. 

In 2023, the value reported by NCPD increased by 14 percent, reaching SR1.462 billion, compared to SR1.280 billion in 2022. By the end of 2023, the number of countries importing Saudi dates had reached 119.  

In an interview with Arab News in March, Mohammed Al-Nuwairan, CEO of NCPD, emphasized that Saudi Arabia’s export portfolio extends beyond dates, encompassing derivatives like molasses, pastes, and others. This diversification enhances the sector’s export presence beyond the Kingdom’s borders.  

“East Asian countries are receiving attention from Saudi exports of dates, especially to Singapore, situated in the heart of countries targeted for exporting dates and their derivatives, such as Indonesia, Malaysia, and also China in particular. What supports this is the high demand for Saudi dates, which possess high nutritional values and production quality,” he said at that time. 

The total value of date and date by-product exports has surged by 152.5 percent since 2016, rising from SR579 million in 2016 to SR1.462 billion in 2023, marking a compound annual growth rate of 12.3 percent.  

According to the Saudi Press Agency, date exports to several countries, including Austria, Norway, and Argentina, as well as Brazil, Portugal, Germany and Canada, exceeded 100 percent. 

According to the Saudi Press Agency, date exports to several countries, including Austria, Norway, and Argentina, as well as Brazil, Portugal, Germany, and Canada, exceeded 100 percent.  

Additionally, the value of Saudi date exports increased to Morocco by 69 percent, Indonesia by 61 percent, and South Korea by 41 percent. Exports to the UK, the US, and Malaysia rose by 33 percent, 29 percent, and 16 percent, respectively.  


Saudi NHC teams up with Chinese firm to construct 20k residential units

Updated 12 May 2024
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Saudi NHC teams up with Chinese firm to construct 20k residential units

RIYADH: Residential supply is set to improve as the Saudi National Housing Co. and China Machinery Engineering Corp. signed a deal to build 20,000 units in the Kingdom. 

In a recent agreement signed in Beijing, the two companies joined forces to address housing needs more effectively by constructing apartments in suburban and residential areas within the Kingdom, directly benefiting individuals and families, the Saudi Press Agency reported. 

The deal was signed during the official visit of the Minister of Municipal and Rural Affairs and Housing and the Chairman of the Housing Program Committee, Majid Al-Hogail, to China as part of the broader efforts to contribute to achieving the targets of the Housing Program — one of the Kingdom’s Vision 2030 programs.  

This initiative aims to partner with leading global companies and attract international investments in the real estate sector. 

At the signing ceremony, CEO Mohammed Al-Buty represented NHC. 

The company emphasized that this agreement complements its qualitative projects with major global construction companies, SPA reported.  

It added that this initiative would be implemented in various areas within the suburbs and urban communities under NHC, distinguished by integrated facilities and services, including health, education, commercial, and public services. 

NHC, one of the largest real estate firms in the Middle East, aims to develop housing communities and improve living spaces in the Kingdom by creating nine integrated residential suburbs and delivering 300,000 units by the end of 2025.  

The company plans to implement integrated urban projects according to the highest standards at affordable prices, as well as enhance the sustainability of residential projects in various regions in Saudi Arabia.  

This comes as the Kingdom aims to elevate services for citizens and unify all efforts across sectors to achieve the targets of the Housing Program in line with the nation’s Vision 2030. This is part of its efforts to increase the homeownership rate for Saudi families to 70 percent. 

Last week, NHC signed a deal with China’s CITIC Construction Group to establish an industrial city and logistic zones for building materials. The undertaking will comprise 12 factories aimed at securing supply chains for the Saudi firm’s housing projects. 

In a statement, the NHC said the agreement with the Chinese construction group is part of its efforts to secure supply chains for its housing initiatives and ensure their timely completion and high quality. 

The Saudi company said the deal entails the construction of 12 factories specializing in building materials, harnessing Chinese expertise, and an uplift in business standards by local factories.  

It added that the agreement also aims to draw top-tier service providers across various company sectors, its subsidiaries, and other projects. 


GCC prioritizes economic diversification for sustainable growth, says official 

Updated 12 May 2024
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GCC prioritizes economic diversification for sustainable growth, says official 

RIYADH: The Gulf Cooperation Council aims to reduce reliance on oil revenues by implementing a comprehensive vision for economic diversification, as emphasized by its Secretary-General, Jasem Al-Budaiwi. 

During the Gulf Creatives Conference, organized by the Diwan at Harvard University in Cambridge, Massachusetts, Al-Budaiwi outlined a vision that embraces diverse sectoral reforms. These initiatives are aimed at strengthening economic resilience and attracting foreign investments, the Saudi Press Agency reported. 

He noted GCC countries have positioned themselves as competitive digital hubs on the global map, supported by their favorable geographic location and young population. 

“The strategic location, coupled with robust infrastructure, paves the way for the council member states to attract international partnerships that support their long-term development goals,” Al-Budaiwi said. 

He added: “This dynamic approach is vital for sustaining economic growth and ensuring the resilience of Gulf economies in the face of global economic fluctuations and regional challenges.” 

Additionally, Al-Budaiwi emphasized the numbers and data supporting these plans and showcased the advancements made by GCC nations, including the establishment of the Customs Union, the GCC Common Market, and the Unified Economic Agreement. He cited Saudi Arabia’s NEOM project as an example of urban development initiatives within GCC nations. 

He explained that smart cities are designed to reduce waste, enhance energy efficiency, and streamline urban management by leveraging artificial intelligence and the Internet of Things. 

He continued by stating that this further underscores the GCC nations’ commitment to technologically advanced and environmentally friendly urban design, as well as the increased emphasis on cybersecurity to mitigate growing risks and maintain confidence in the digital economy. 

Moreover, Al-Budaiwi emphasized the transition from oil-dependent to diversified economies and expressed satisfaction with the outstanding economic and integration achievements of the GCC countries. 

In February, he held a series of meetings in Riyadh with foreign ambassadors to Saudi Arabia. 

Al-Budaiwi met with the South Korean Ambassador to Saudi Arabia, Choi Byung Hyuk, at the general secretariat headquarters in Riyadh. 

During the meeting, the secretary-general discussed the developments in the free trade agreement between the GCC countries and South Korea, which was signed in December 2023. 

Both sides expressed their desire to enhance cooperation between nations and increase focus on mutual interests such as education, health, investment, and pharmaceuticals. 

The meeting also reviewed relations between the GCC and South Korea, emphasizing the importance of enhancing strategic dialogue through the areas of cooperation outlined in the joint action plan.


Expat remittances from Saudi Arabia hit $3.2bn in March

Updated 12 May 2024
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Expat remittances from Saudi Arabia hit $3.2bn in March

  • The upswing is the highest since June 2022, SAMA data shows 

RIYADH: Remittances by expatriates in Saudi Arabia grew 28 percent in March as compared to the preceding month to reach SR11.96 billion ($3.2 billion), the highest since 2022, official data showed.

The launching of new development projects in the Kingdom has led to an increase in the expatriate population, as they actively contribute to the growth of business activities. This, in turn, may have influenced their remittance patterns.

This growth in remittances is also exemplified by the Regional Headquarters Program, which has successfully attracted over 200 companies from across the globe to obtain licenses to set up their regional bases in Saudi Arabia.

These entities are driven by the prospect of securing lucrative government contracts. Additionally, the ongoing structural reforms to enhance foreign direct investment have further stimulated business growth in the Kingdom. 

Alongside regulatory reform, Saudi Arabia has undergone modernization in its legal governance and enforcement practices such as digitization of employment contracts, virtual court hearings, and provision of online government services. These initiatives are integral components of a broader set of reforms aimed at positioning the Kingdom as one of the leading nations in terms of ease of doing business.

However, on a quarterly basis, there was a 0.34 percent decrease in expat remittances compared to the same period last year. This trend can be attributed to Saudi Arabia’s evolving economic landscape, particularly the implementation of financial sector reforms, which are increasingly enticing residents to invest a portion of their earnings within the Kingdom.

In February of this year, a report by Jadwa Investment noted that workers’ remittances were unexpectedly low despite the influx of expatriates.

This phenomenon according to their report may suggest that some expatriates opted to capitalize on the high savings rates in the Kingdom instead of remitting funds home.

The Saudi Central Bank, also known as SAMA, has raised key policy rates multiple times in 2022 and 2023, given that the Saudi currency is pegged to the dollar. This move aligns with the actions taken by the US Federal Reserve, which has been gradually increasing interest rates as part of its strategy to address inflationary pressures.

Conversely, remittances from Saudis saw a 9 percent monthly increase, totaling SR5.11 billion, yet experienced a quarterly decline of 0.53 percent.

The occurrence of Ramadan in March this year likely influenced the increase in Saudi remittances for this month. During this holy month, individuals often engage in increased charity, support their families, and fulfill religious obligations, such as zakat.